Sha re ho lde rs Pre se nta tio n April 17, 2008 W Ma jo r De ve - PDF document

Sha re ho lde rs Pre se nta tio n April 17, 2008

W Ma jo r De ve lo pme nts in E RVI F Y2007 OVE Br ande d Consume r F oods (Philippine s) • Split the Sna c ks a nd Bisc uits te rtia ry sa le s fo rc e to impro ve c o ve ra g e in do wnsc a le a c c o unts • Ac q uire d the wa te r b usine ss o f Ne stle Wa te rs Philippine s • E xpa nde d c o ffe e c a pa c itie s in o ur Ro sa rio c o ffe e pla nt; c o nc lude d le a sing a g re e me nt fo r a dditio na l c o ffe e ma nufa c turing c a pa c ity Br ande d Consume r F oods (Inte r national) • E xpa nde d b isc uits pro duc tio n c a pa c ity in T ha ila nd a nd put a ne w b isc uits pro duc tio n line in Vie tna m Commodity F oods • Co mple te d c o nstruc tio n o f sug a r re fine ry in SONE DCO with 15,000 L K G c a pa c ity • E nte re d ne g o tia tio ns to purc ha se PASSI , la rg e st sug a r mille r in Pa na y Cor por ate • So ld a ll URC-o wne d Ro b inso ns L a nd Co rpo ra tio n sha re s during RL C’ s fo llo w o n o ffe ring in Oc to b e r 2006 1

ORMANCE Hig hlig hts Q1 2008 Sale s (PhP MM) F Y 2007 Net Sa les BCF G* 28,370 +7% 8,316 +17% 37,721 RF Ag ro - 5,649 +11% 1,494 +10% 35,184 I ndustria l PE Co mmo dity 3,702 +6% 1,049 +42% 0 10,000 20,000 30,000 40,000 AL F o o ds (Ne t) Ope ra ting Inc o me NANCI T otal UR C 37,721 +7% 10,859 +18% 3,180 Ope r ating Inc ome (PhP MM) 2,701 BCF G* 1,813 +30% 614 +50% I 0 1,000 2,000 3,000 4,000 F Ag ro - 810 +10% 135 (19%) Core Ea rning s I ndustria l Co mmo dity 1,306 +22% 302 +16% 3,243 F o o ds 2,913 Co rpo ra te (749) (134) 0 1,000 2,000 3,000 4,000 T otal UR C 3,180 +18% 917 +26% FY2007 FY2006 * BCF G fig ure s inc lude Do me stic , 2 I nte rna tio na l, a nd Pa c ka g ing

ORMANCE Bra nde d Co nsume r F o o ds - Philippine s • Do me stic ma rke t re c o ve rs Sale s (PhP MM) F Y 2007 Q1 2008 fro m slo w g ro wth in RF pre vio us ye a r Sna c kfo o ds 11,760 +8% 3,508 +22% PE • Sna c kfo o ds g ro ws o n Be ve ra g e 5,360 +50% 1,497 +25% impro ve d de ma nd a nd Gro c e ry 2,222 (4%) 682 +5% AL split o f Sna c ks/ Bisc uits Othe rs 795 +7% 245 +20% sa le s fo rc e NANCI T otal 20,137 +15% 5,932 +20% • Be ve ra g e c o ntinue s to drive ma rke t g ro wth • Gro c e ry hit b y rising input Ope r ating Inc ome (PhP MM) pric e s, b ut no w re c o ve ring I F Sna c kfo o ds 1,617 +12% 501 +49% • E xpo rts a ffe c te d b y rising Philippine pe so Be ve ra g e 639 +24% 139 +34% Gro c e ry (36) (0%) 32 +23% Othe rs 32 (44%) (13) (263%) T otal 2,252 +14% 659 +39% No te : E xc lude s pac kaging 3

T E MARK Snac kfoods gr owing ste adily Cho c o la te s +10% 3-in-1 c o ffe e +56% NE So ft/ Ha rd Ca ndie s +8% I so to nic drinks +47% Sna c ks +5% T e a +41% PPI Bisc uits +0% E ne rg y drinks +19% I L RT E – Be a ns +1% Pa c ka g e d wa te r +9% PHI I nsta nt No o dle s -1% Re a dy to drink – Co ffe e +9% T o ma to Sa uc e -10% Ca rb o na te d so ft drink +5% Sour c e : AC Nie lse n Cate gor y T r e nd Sur ve y – MAT De c 2007; Re a dy to drink – Juic e +5% volume gr owth Dome stic sale s sur ging; be ve r age gr owth c ontinue s BCFG Domestic Sales C2 sales volume (‘000 liters) 2200 14000 10,652 2000 12000 (PhP millions) 1800 10000 8000 1600 6000 1400 4000 1200 2000 0 1000 5 6 7 4 4 4 5 5 5 6 6 6 7 7 7 0 0 0 0 0 0 0 0 0 0 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 0 0 0 0 - - - - - - - - - - - - - - - r r r n p c n p c n p c n p c a a a u e u e u e u e e e e e M M M J S D J S D J S D J S D FY2008 FY2007 FY2006 4

ORMANCE Bra nde d Co nsume r F o o ds - I nte rna tio na l • Ope ra ting lo sse s in China Sale s (U F Y 2007 Q1 2008 S $ MM) b e ing te mpe re d RF T ha ila nd 75 +21% 24 +24% • Sa le s so a ring in T ha ila nd PE a nd Vie tna m Ma la ysia / SG 32 +5% 8 +24% • C2 sa le s vo lume in I ndo ne sia 23 (25%) 6 (13%) AL Vie tna m g ro wing ste a dily, China / HK 14 (32%) 5 +48% NANCI re a c hing 400,000 c a se s in Vie tna m 6 +32% 4 +176% De c e mb e r 2007 T otal 150 +1% 47 +25% • C2 no w b e ing e xpo rte d to T ha ila nd Ope r ating Inc ome (US $ MM) I F T ha ila nd 4.6 (1%) 1.8 +1% Ma la ysia / SG 0.7 (10%) 0.1 (44%) I ndo ne sia (3.1) (82%) (0.6) (284%) China / HK (5.2) +39% (1.3) +9% Vie tna m (3.8) (20%) (0.8) +28% T otal (7.0) +15% (0.8) (12% ) 5

ORMANCE Ag ro -I ndustria l Gro up URC F e e d s Sale s (PhP MM) F Y 2007 Q1 2008 • Rising c o sts o f inputs suc h RF F e e ds 2,637 +19% 683 +8% a s c o rn a nd fe e d whe a t PE F a rms 3,012 +5% 811 +12% URC F a rms AL T otal 5,649 +11% 1,494 +10% • Hig he r pric e s c a use d b y NANCI lo we re d supply due to dise a se o utb re a ks Ope r ating Inc ome (PhP MM) F e e ds 411 (3%) 64 (27%) I F F a rms 399 +28% 71 (9%) T otal 810 +10% 135 (19%) 6

ORMANCE Co mmo dity F o o ds Gro up URC Sug a r Sale s (PhP MM) F Y 2007 Q1 2008 • Mill e xpa nsio n finishe d in RF F lo ur 3,604 +2% 1,280 +36% time fo r 2008 milling PE se a so n Sug a r 2,698 +30% 495 +16% • PASSI sug a r mill a c q uire d AL Sub to ta l 6,302 +13% 1,775 +30% in Oc to b e r NANCI T ra nsfe rs (2,600) +24% (726) +15% URC F lo ur T otal 3,702 +6% 1,049 +42% • Whe a t pric e s inc re a sing wo rld wid e I F Ope r ating Inc ome (PhP MM) F lo ur 453 +9% 139 +45% Sug a r 853 +30% 163 (1%) T otal 1,306 +22% 302 +16% 7

ORMANCE Asse ts a nd L ia b ilitie s Balanc e She e t F Y 2007 Q1 F Y2008 Gr oss De bt and Cash (PhP MM) (PhP MM) Ca sh a nd Ca sh 21,592 19,669 RF E q uiva le nts 25,000 Othe r Curre nt Asse ts 11,747 13,536 PE 21,592 19,669 Pro pe rty Pla nt a nd 22,267 22,504 20,000 18.831 18.977 AL E q uipme nt – ne t Othe r no n-c urre nt 3,068 3,162 NANCI Asse ts 15,000 T otal Asse ts 58,674 58,871 10,000 Curre nt L ia b ilitie s 14,162 15,328 I 5,000 F No nc urre nt L ia b ilitie s 9,516 8,828 T otal L iabilitie s 23,678 24,156 0 FY2007 Q1 FY2008 Re ta ine d E a rning s 20,300 20,545 Cash, Mkt. Se c uri ti e s, T e m p. I nve stm e nts Othe r E q uity 14,696 14,170 Gro ss De b t T otal E quity 34,996 34,715 8

ANS Pla ns a nd E xpe c ta tio ns PL Cor por ate • Pa id o ff URC 08 b o nd • Co ntinue 50% divide nd pa y-o ut po lic y • Pursue M&A tha t will a dd va lue to the c o mpa ny • Ca pita l e xpe nditure s o f a b o ut P3 b illio n in F Y2008 • Sto c k b uy-b a c k pro g ra m E xpe c tations • Po sitive tre nds in do me stic BCF G to c o ntinue , e spe c ia lly in sna c kfo o ds • F urthe r re c o ve ry in inte rna tio na l vo lume s, pa rtic ula rly in T ha ila nd a nd Vie tna m • Go o d vo lume s b ut ma rg in pre ssure in flo ur, fe e ds, a nd fa rms; ma rg in re c o ve ry to wa rds the se c o nd q ua rte r o f the fisc a l ye a r • Re ve nue a nd E BI T g ro wing in the mid-te e ns 9

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